New investments could span ports, shipping, energy, space, logistics and technology as India-UAE economic ties deepen
The United Arab Emirates has indicated plans to invest a further $25 billion in India, with the longer-term objective of taking its total investment in the country to $100 billion, Union Commerce and Industry Minister Piyush Goyal said on Monday.
The announcement followed the 14th meeting of the India-UAE High Level Joint Task Force on Investments, where both sides discussed expanding cooperation across several strategic sectors. Goyal said the proposed investments could cover ports, shipbuilding, space, logistics, Indian start-ups and the Indian stock market.
The two countries also identified six areas for closer cooperation in shipping: ship ownership, modern port development, ship manufacturing, repair and maintenance, ship recycling and container manufacturing. A bilateral working group is expected to take forward these areas.
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Goyal said part of the additional investment was already beginning to materialise, including around $3 billion in RBL Bank and approximately $1 billion in Sammaan Capital
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The UAE has already invested about $25 billion in India and is currently the country’s seventh-largest source of foreign direct investment, according to the minister
Energy security was another key area of discussion. India and the UAE are examining cooperation involving strategic petroleum reserves, LPG and LNG supplies and subsea pipelines. The two sides are also exploring investment opportunities in ports as India seeks to expand its port capacity over the coming decade.
Cooperation is also being widened to civil aviation, space technology, food security, agricultural innovation, logistics, artificial intelligence, emerging technologies and fintech.
Bilateral trade has reached around $100 billion, with India and the UAE targeting $200 billion by 2032. The countries are also seeing increased use of local-currency settlement for trade, with transactions in Indian rupees and UAE dirhams gaining ground.
The latest developments underline the expanding economic relationship following the India-UAE Comprehensive Economic Partnership Agreement, which came into force in May 2022.
